Ford COO lays out brutal reality for investors

After days of watching the stock price sink faster than competitors, and concerns about the strategic direction of Ford Motor Co., incoming chief operating officer Jim Farley took to the stage to make his first public speech early Wednesday in New York.

Investor expectations were high — and ultimately unmet — that he would announce a significant and dramatic plan for repositioning the company.

“We know what we need to do,” said Farley, 57, president of new business, technology and strategy, in remarks to the Wolfe Research Global Auto, Auto Tech and Mobility Conference. It was broadcast on the web globally so shareholders and the media could listen.

He said the company performs best in crisis situations, and acknowledged that the feeling at Ford world headquarters now may be compared to the Great Recession.

“It takes me back to about 10 years ago,” he said. “I have seen the look before.”

But Ford rises to brutal challenges such as an economic downturn, Thai floods, an earthquake in Japan, the coronavirus — “where there’s a threat,” Farley said. “Decisions get made quickly. It’s very natural. Everyone at Ford Motor Company knows the situation we’re in.”

While automakers and auto suppliers in different parts of the world struggle with shutdowns and slowdowns caused by the coronavirus’ international health scare, Farley didn’t comment specifically on a planned response and he wasn’t asked by the host.

“We need a more compelling growth story,” Farley said.

Ford’s latest stock dip occurs more than two weeks after reporting a grim $47 million in net profit in 2019 for the global company, down from $3.7 billion a year earlier. Meanwhile, GM showed a $2.41 billion net profit in 2019.

Ford has seen a steady slide prior to the coronavirus impact on stocks this week. Ford stock closed Tuesday at $7.23 per share, the lowest since November 2009.

The company launched an $11 billion restructuring campaign in July 2018 after a disappointing earnings report.